Daily Archives: June 5, 2012

The Euro-zone is proceeding nicely along the lines set out in The Schuman Declaration, 9th May 1950. This proposed the creation of a European Coal and Steel Community, whose members would pool coal and steel production.

By pooling basic production and by instituting a new High Authority, whose decisions will bind France, Germany and other member countries, this proposal will lead to the realization of the first concrete foundation of a European federation indispensable to the preservation of peace.

This thread of federalism has run through all European treaties. Make no mistake – all road signs have pointed to a United States of Europe being the final goal.

The current ongoing crisis in the Euro-zone is proof that monetary union cannot work without fiscal union. The can only be resolved by one of two means – abandoning the single currency or completing a fiscal union.

It is clear that monetary union has benefited Germany, Europe’s economic powerhouse, by keeping the exchange rate for her exports lower than an independent Deutsche Mark would trade at. Apart from the loss of face in abandoning the single currency, an independent German currency would surely appreciate very quickly.

This is why Germany has been very keen to keep the Euro going. This has resulted in dire threats to Greece about electing an anti-bailout Government. It is why both Italy and Greece have unelected Leaders, put in place to ensure the anti-austerity forces are kept in check.

The Guardian reported on plans being drawn up to create the federal Europe.

In return for yielding to the pressure to pay to save the euro, Berlin will insist on major steps towards a eurozone federation or political union with budgetary, fiscal, and scrutiny powers vested in Brussels and in the European Court of Justice, meaning vast transfers of sovereignty from member states.

This really cuts to the chase. When a country can no longer set its own budget, and have its plans overseen, scrutinised and blocked by outside bodies, it relegates the powers of an elected Government to being no more than those of local council, deciding whether to empty wheely bins weekly or fortnightly.

This structure will ensure the austerity mindset, firmly in place among global capitalists, will dominate and spread across all of Europe. This mindset will be hard-wired into the rules and regulations.

Not only will democracy be diminished, the result could be catastrophic for peace within Europe itself. The tensions seen on the streets of Athens could spread to other countries, with no democratic outlet for the protesters.

The Euro-zone crisis is real, but a push for federalism would be a certain disaster for its citizens. Peace and prosperity can only come from freeing people and allowing democracy to bloom.